FBAR & Streamlined Filing – Catch Up Properly, Quietly, Confidently
If you’ve ever had a foreign bank account, you may already owe FBAR filings – even if you didn’t know it.
And if you’ve been in the US for years without filing them, you’re not the first. You’re also not necessarily in serious trouble.
But the situation does need to be handled correctly, and the right path depends on your specific facts.
This page is about exactly that.
What FBAR Is
FBAR – Report of Foreign Bank and Financial Accounts (FinCEN Form 114) – is an annual disclosure required of any U.S. person whose foreign financial accounts had a combined value over $10,000 USD at any point during the year.
Key points:
- check_circleThe threshold is based on account balances, not income earned
- check_circleIt applies to the aggregate of all foreign accounts, not each one separately
- check_circleU.S. person includes citizens, green card holders, and resident aliens
- check_circleForeign accounts include bank accounts, brokerage accounts, mutual funds, and certain other foreign financial accounts
- check_circleFBAR is filed with FinCEN – separate from your tax return
- check_circleThe deadline is April 15, with an automatic extension to October 15
Why FBAR Matters
FBAR penalties can be substantial. Civil penalties for non-willful failures and significantly higher penalties for willful failures.
But here’s the part that’s often missed: most past non-filers are non-willful – meaning they didn’t know FBAR existed, didn’t realize it applied to them, or weren’t advised about it by their previous accountant.
Non-willful situations are typically resolvable through the proper compliance procedures, often with reduced or no penalties depending on the facts.
FATCA – Form 8938 (Different Form, Same Conversation)
Form 8938 (Statement of Specified Foreign Financial Assets) is a separate IRS filing that reports foreign assets on your tax return. It has different thresholds and includes assets beyond just bank accounts.
Many taxpayers need both FBAR and Form 8938. We file both where required.
Streamlined Filing Compliance Procedures
If past FBAR or foreign income reporting was missed and the failure was non-willful, the IRS Streamlined Filing Compliance Procedures may allow you to come into compliance:
Streamlined Foreign Offshore Procedures (SFOP)
- for taxpayers residing outside the US who meet the criteria
Streamlined Domestic Offshore Procedures (SDOP)
- for taxpayers residing in the US who meet the criteria
Under SDOP (the more common version for US residents), the program typically requires:
- check_circleAmending the most recent 3 years of US tax returns to include foreign income
- check_circleFiling the most recent 6 years of FBARs
- check_circleA non-willful certification statement
- check_circlePayment of taxes due plus a single 5% miscellaneous offshore penalty
SFOP for taxpayers abroad may waive the 5% penalty entirely if eligibility criteria are met.
How We Handle Streamlined Submissions
This is detailed work. Done properly, it brings you fully into compliance with minimum disruption. Done sloppily, it can backfire.
Our process:
Who This Page Is For
If You Have a Foreign Account – A Few Things Worth Knowing
These come up often:
None of this is intuitive. None of it is your fault for not knowing. But it’s all part of the conversation we have.
Working With Us on FBAR
Initial consultations are confidential. We need a clear picture of your accounts, income, and filing history – but the conversation stays between us.
Schedule a Consultation arrow_forwardOur Commitment
We never rush you into the most expensive compliance procedure when a simpler, more efficient path would have worked just as well.
Frequently Asked Questions
If the combined value of all your foreign financial accounts exceeded $10,000 USD at any point during the year, FBAR is required – even if each individual account was small. The threshold is on aggregate balances.
Yes, if the account is over the threshold and you have ownership or signature authority. Joint accounts are reportable.
Let's review your situation confidentially. If the past failures were non-willful, the Streamlined Filing Compliance Procedures are often the right path – typically resolving past compliance with reduced or no penalties, depending on your facts.
FBAR (FinCEN Form 114) is filed with FinCEN and reports foreign accounts. Form 8938 (FATCA) is filed with your tax return and reports foreign assets more broadly. Many taxpayers need both. They have different thresholds and rules.
Streamlined submissions are not automatically audited. The procedure is specifically designed to bring non-willful taxpayers into compliance with reasonable certainty. Outcomes depend on individual facts.
Technically yes, but the procedure has multiple components – amended returns, FBARs, non-willful certification, foreign tax credit calculations – and errors can be costly. Most taxpayers benefit significantly from professional handling.
This is a sensitive determination and depends on your specific situation. We discuss it carefully during the initial review – and if Streamlined isn't appropriate, we'll be honest about other options.
Preparation typically takes several weeks. IRS processing of submissions varies. We give you a realistic timeline at the start.
* Outcomes depend on individual facts; we don’t promise specific results.
Worried about unfiled FBARs?
If you’ve been carrying this around quietly – wondering whether you should have been filing FBAR all these years – let’s have a confidential conversation. It’s almost always less complicated than the worry.